A WARNING against immediate pay hikes was raised yesterday by the National Economic and Development Authority (NEDA), ahead of Metro Manila wage board consultations scheduled to start on Thursday.
Dennis M. Arroyo, NEDA director for national policy and planning who also sits as member of the wage board, said restraint was needed given the eurozone’s fiscal woes, which he claimed would harm prospects for a global economic recovery.
The Metro Manila wage board has scheduled three consultations this month to discuss the Trade Union Congress of the Philippines’ (TUCP) petition for a daily minimum wage hike of P75.
“We are lifting the yellow light at the moment, which means caution in the meantime as it is still a big question if it is already the right time to increase wages given various global threats,” Mr. Arroyo told reporters yesterday.
“We are sweeping our radar across Europe to see if there is any relapse in our global economy. My fear is a possible new trigger for a double dip, or a second round of a global financial crisis arising from fiscal problems of Ireland, Portugal, Iceland, and Spain,” he added.
The National Wages and Productivity Commission (NWPC), the policy-making body which has administrative supervision over the regional tripartite wages and productivity boards, has yet to weigh evidence that “things are indeed firm already,” Mr. Arroyo said.
The NEDA official’s pronouncement runs counter to statements by NWPC executive director Ciriaco A. Lagunzad III that minimum wage hikes — shelved last year amid the global downturn — could be announced by Labor Day.
Other officials yesterday pointed out that local economic conditions would take precedence in deciding wage hikes.
“Concerns on the fiscal deficits of European countries and other global threats are considered as they could have a bearing on our local economy. However, even without global threats, concerns on our local situation will still determine granting wage hikes,” said Esther F. Guirao, NWPC deputy executive director, in a telephone interview.
“The local situation remains volatile given the Mindanao power outages and the El Niño phenomenon.”
Asked if current threats to the global economy would be a key factor in deciding a wage hike, Labor Secretary Marianito D. Roque replied in a text message: “Nope, we consider local elements in wage determination.”
Wage hike decisions could be out “sometime in May,” Mr. Arroyo said.
After an April 8 meeting with the labor sector, the Metro Manila wage board will hold consultations with employers and the Regional Tripartite Industrial Peace Council on April 19 and 26, respectively. –Businessworld
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